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TOPIC: Mortgage renewal!

Mortgage renewal! 10 months 4 weeks ago #1

  • Wanderer
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In my cases of several mortgage experiences the mailing address has always changed. Also, to be sure I did not have a lost payment I use the ACH Payment methods and love it with alerts letting me know the payment posted and I look it up on the mortgage processor's website. As to the sale of mortgage or student loan processing it is a generally accepted process and is used regularly. Loan originators don't want to tie up their current capital with long term obligations so they package the loans and sell them to the secondary market buyers such as life insurance companies that desire to stash cash for long time lines (remember the old commercial your local banker wants to keep the money rolling through the community). This has been a way to keep the banks flexible to keep originating loans and not loosing use of their capital or running into FDIC Capital requirements. It is common place and since you are dealing with different loan processors the addresses always change! From where I sit it is one more thing to worry about that does nothing for my bottom line. However, such clauses are in virtually 100% of loans today and is not bizarre and is normal practice in the industries.
Last Edit: 10 months 4 weeks ago by Wanderer.
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Mortgage renewal! 10 months 4 weeks ago #2

  • FrankN
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Very bizarre! If you wanted to mail your mortgage check in, did the location change then?
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Mortgage renewal! 11 months 10 hours ago #3

  • JacksonM
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So far, my mortgage was sold once, but it was within the same company. For some odd reason, the loan was processed and approved in another city, then sold to the location in the city where I live. I've never quite figured it out, but from there, they've held on to it.
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Mortgage renewal! 11 months 17 hours ago #4

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Mostly because the original banks are in the buy and hold business. They originate the loans and then sell it off to investors/other banks who want the earning asset. It also frees their balance sheet up to take on more mortgage loans.
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Mortgage renewal! 11 months 1 day ago #5

  • Lexie
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FrankN wrote:
Lexie wrote:
What happens when one finance company sells your loan to another company? This happened twice to us over the years and we didn't seem to be affected at first. Then small items began to appear on our monthly statement. The interest rates never went up but I do believe there were hidden charges there somewhere.

This happens all the time. Depending on the loan, it is almost guaranteed to change hands atleast once. Your basic terms will remain the same (term, interest rate, etc.). The only major change will be where to send your payment.[/quote

Why do they do that FRANKN? Everything remained basically the same but like JGIBBS, it's a little unnerving to change in mid stream.
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Mortgage renewal! 11 months 2 days ago #6

  • JGibbs
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Wanderer wrote:
GADS! My loan was just transferred again. Five times in seven years. The worst part is the new financial institution is Wells Fargo. Cannot understand why a loan gets moved around every sixteen months for me? Is it the new group thinks they can get me to refinance? Very nerve racking as I sure don't want to be late on any payments.
I'm sure you're positively delighted to work with Wells Fargo. There is no other company with better ethics, so you're in good hands. Really though, I wonder why your mortgage has changed hands so many times. Has the value of your home changed dramatically since you got the mortgage?
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Mortgage renewal! 11 months 4 days ago #7

  • Wanderer
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Each lender has required a new user name and password (which is good for security and I change it).
Last Edit: 11 months 4 days ago by Wanderer.
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Mortgage renewal! 11 months 4 days ago #8

  • FrankN
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Wow that is more than I would expect! Have you had to create a new username/password at a new website every time it has switched?
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Mortgage renewal! 11 months 5 days ago #9

  • Wanderer
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GADS! My loan was just transferred again. Five times in seven years. The worst part is the new financial institution is Wells Fargo. Cannot understand why a loan gets moved around every sixteen months for me? Is it the new group thinks they can get me to refinance? Very nerve racking as I sure don't want to be late on any payments.
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Mortgage renewal! 11 months 5 days ago #10

  • FrankN
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Lexie wrote:
What happens when one finance company sells your loan to another company? This happened twice to us over the years and we didn't seem to be affected at first. Then small items began to appear on our monthly statement. The interest rates never went up but I do believe there were hidden charges there somewhere.

This happens all the time. Depending on the loan, it is almost guaranteed to change hands atleast once. Your basic terms will remain the same (term, interest rate, etc.). The only major change will be where to send your payment.
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Mortgage renewal! 11 months 1 week ago #11

  • Lexie
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What happens when one finance company sells your loan to another company? This happened twice to us over the years and we didn't seem to be affected at first. Then small items began to appear on our monthly statement. The interest rates never went up but I do believe there were hidden charges there somewhere.
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Mortgage renewal! 11 months 2 weeks ago #12

  • Moneyes
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FrankN wrote:
Wanderer wrote:
A realtor told me once that in a regular home loan situation that when all the costs for time and effort are figured into a new mortgage, refi or ??? that the gain should exceed 1% or forget about it. Over the years and many houses later I have not yet changed a mortgages (realize not all mortgages are created alike). Looked at mortgages but the numbers did not create a gain large enough to offset the hassle. Believe a person needs to be careful and run the numbers, then decide. I still use the 1% rule as a guide.

I think 1% rule is a useful guideline. It also depends on what your new term is. For example, if you had a $500K loan and plan to be in that house for 10+ years, and a refi offered you a 0.5% reduction in interest, I would take that deal any day.

That is a very good point. Run the numbers and you'll see that .5% and 1% can equal the same amount of "savings" when all other numbers fall into place.
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Mortgage renewal! 11 months 3 weeks ago #13

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Wanderer wrote:
A realtor told me once that in a regular home loan situation that when all the costs for time and effort are figured into a new mortgage, refi or ??? that the gain should exceed 1% or forget about it. Over the years and many houses later I have not yet changed a mortgages (realize not all mortgages are created alike). Looked at mortgages but the numbers did not create a gain large enough to offset the hassle. Believe a person needs to be careful and run the numbers, then decide. I still use the 1% rule as a guide.

I think 1% rule is a useful guideline. It also depends on what your new term is. For example, if you had a $500K loan and plan to be in that house for 10+ years, and a refi offered you a 0.5% reduction in interest, I would take that deal any day.
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Mortgage renewal! 1 year 4 days ago #14

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A realtor told me once that in a regular home loan situation that when all the costs for time and effort are figured into a new mortgage, refi or ??? that the gain should exceed 1% or forget about it. Over the years and many houses later I have not yet changed a mortgages (realize not all mortgages are created alike). Looked at mortgages but the numbers did not create a gain large enough to offset the hassle. Believe a person needs to be careful and run the numbers, then decide. I still use the 1% rule as a guide.
Last Edit: 1 year 4 days ago by Wanderer.
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Mortgage renewal! 1 year 4 days ago #15

  • Lexie
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There is so much paperwork involved in doing this!!!!! I totally agree with Moneyes that you should check with your current mortgage company for a lower interest rate. If they won't give one then I hope you are saving a lot more than a couple of percent by transferring.
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